Daily WebLogs

More Financial Turmoil

Oct 06, 2008

The way they talked, it seems now that everyone knew that the $700 billion bailout would not really work, but they did not know what else to do about the financial markets. The only tool the Fed has in its arsenal is in setting interest rates and selling more debt to the Federal Government.

Ultimately, it should be a "no-brainer" to understand that one cannot solve a debt problem by creating still more debt. I heard one "financial expert" say on public radio that the underlying problem is "too much debt." Yes, of course. But how did it get this way? Is the problem simply that too many people were going into debt? Is it that the government is spending more than its revenue?

Or is it the fact that the Federal Reserve Act, signed in 1914, removed from the government the right to issue lawful, constitutional money, and chose to give that right to a private banking system, which agreed to create money only if someone borrowed it into existence?

It used to say on American currency, "This note may be redeemed in lawful money." It was plain back in those days that Fed money was not even "lawful," but was redeemable in lawful money upon demand.

It took later legislation to make Federal Reserve Notes actually "lawful." But making the notes lawful did not solve the problem. Those notes still represent debt, not wealth, because every dollar in circulation and all credit money is a debt owed to someone. The national debt alone has now been raised to $11.3 TRILLION, to say nothing of private debt.

Every economy needs money as its lubricant. When money is debt-free, such as the old United States Notes, it is simply a medium of exchange that provides for a strong economy. But when money is created only when someone asks to borrow it, the result is an immediate influx of cash that is spent into circulation, but that debt must be repaid with interest in the following years.

It does not take a financial expert to see that if more money must be removed from circulation than is put into the economy, then more and more people will have to borrow money in order to replace what is removed. Eventually, there comes a tipping point where the debt is so enormous that the whole system collapses under its own weight.

The government can pass all the bailout bills it wants, but the Fed is not going to GIVE the money to the government. It will only LEND the money as an interesting-bearing debt. And so, new debt is thrown at old debt, only creating a worse problem in the long-term.

The fact that the stock markets immediately dropped after the bailout bill was passed suggests to me that most financial experts know that this bailout is not going to solve the problem. As I write this, the DOW is down about 800 points from the moment the bailout was signed into law. European and Asian markets are all in turmoil as well.

Perhaps it would have been better not to have passed the bailout at all.

The only long-term solution is to declare a Jubilee and cancel all debt. Right now we are beyond the place where we could resolve the problem by simply nationalizing the Federal Reserve System--even if the power brokers of the world should allow such an event to take place. Babylon will never declare a Jubilee, because it does not believe in such stuff. Neither the Jews nor the Church ever declared a Jubilee when it was in their power to do so. It was not until Sept. 23, 1996 that the overcomers (i.e., their representatives) declared a Jubilee, as explained in my book, Secrets of Time.

More and more, the Babylonian system is increasingly in need of power grabs designed to try to hold it together. The "solution," they insist, is always to "give us more power." What? More power to the ones who caused the problem? And got paid millions of dollars to do it? I don't think so.

Silver Manipulations

Another good example of criminal activity in government is their refusal to put a stop to the silver manipulations by those silver users who want to keep the price of silver low. One or two big institutions are shorting the market in a big way to keep prices well below the cost of production. There is now a huge shortage of silver, proven by the simple fact that deliveries now take 5 months. And yet, the paper price supposedly indicates that there is a glut of silver being sold.

The fact is, most of the "silver" being sold is simply paper--a promise to sell--which speculators buy and sell as if the silver actually exists. But so much paper is being passed around that it creates the illusion of a glut of silver, when in fact there is a severe shortage. And government officials look the other way, paid off, no doubt, by the manipulators.

Silver is vital to all electronics. It is the world's most versatile metal for industrial purposes. Gold is accumulated, while silver is used up. Thirty years ago there was 5 times as much silver as gold. Now there is 5 times as much gold as there is silver. And yet the price remains inverted, as if gold was more valuable than silver. At some point, if the world economy continues to build electronic devices, they will have no more silver to buy, because the mines will shut down after going bankrupt through low prices.

I look for the day when the speculative price of "paper silver" becomes detached from the price of "real silver." In other words, if people don't want to wait for months or years to buy real silver, they will agree to pay a realistic price for it without going through the manipulated "market price." But as long as the mines are willing to sell their real silver at such depressed prices, the present situation will continue until they go bankrupt.

It is obvious that the board of directors for a lot of mines are being bribed by the silver users to allow their mines to go into bankruptcy. If they would withhold even 10 percent of their production, the whole conspiracy would collapse immediately. But they don't, and this strongly suggests bribery, threats, or just old-fashioned collusion with the big silver users. So don't buy shares of stock in silver mines. If you can get real silver at current prices, it's a real bargain right now.

The Year 2010

Toward the end of this past July, I wrote about the year 2010 as being a major endpoint of two very long-term prophetic cycles, dating back to biblical times. It is 210 years from the time Washington D.C. was built and the U.S. government moved there. It is also 390 years from 1620, when the Pilgrims arrived at Plymouth Rock. Both of these cycles actually go back to the fall of Samaria in 721 B.C.

From the fall of Samaria, it is 7 periods of 390 years, and the final 390-year period goes from 1620-2010.

From the fall of Samaria, it is 13 periods of 210 years, and the final 210-year period goes from 1800-2010.

The year 2010 actually begins (Hebrew time) in September of 2009 and extends until September of 2010. I suspect we are now heading down the year-long home stretch toward some major change in the world. Events in the year from now until then must be watched carefully to see what might occur at that time. The particular place to watch is Washington D.C., our nation's capital, since the long-term time cycles date from the collapse of Israel's capital, Samaria.

I believe that the crack in the Capitol Dome in Olympia, Washington (Feb. 28, 2001), caused by the 6.8 Richter earthquake under Devils Head, is a major sign of what is about to happen in Washington D.C. The gods of Mount Olympus are overthrown, and we could soon see the effects of this in the earth.

"Thy Kingdom come."

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